How to Save on Auto Insurance: Tips and Strategies for Reducing Your Premium

Owning a car provides excellent comfort and convenience for travelling, but it also carries significant financial responsibilities. Apart from the car loan EMIs, fuel expenses, and maintenance costs, one significant recurring expense is auto insurance premiums. Although Comprehensive Car Insurance policies are legally mandatory, they can be expensive. Can you lower your car insurance costs […]

Owning a car provides excellent comfort and convenience for travelling, but it also carries significant financial responsibilities. Apart from the car loan EMIs, fuel expenses, and maintenance costs, one significant recurring expense is auto insurance premiums.

Although Comprehensive Car Insurance policies are legally mandatory, they can be expensive. Can you lower your car insurance costs without compromising on protection?

This blog post covers intelligent tips and strategies for lowering your four-wheeler insurance costs while getting adequate coverage.

Why Reduce Car Insurance Premiums?

Before considering reducing premiums, understand why it is essential:

 

• Saves Money: Lower premiums directly translate to savings you can use for other expenses. Over the long term, the savings from reduced auto insurance add up.

 

• Eases Financial Stress: The high car insurance premium many individuals and families pay annually places a heavy financial burden on them. Trimming the premium relieves this stress.

 

• Funds Car Maintenance: The money saved from lower insurance premiums can be used for the car’s periodic maintenance and servicing needs.

 

• Enhances Affordability: Making car insurance more affordable allows people to comply with the legal mandate without putting a dent in their household budget.

 

• No Impact on Claims: Smart techniques to reduce premiums do not negatively impact your ability to raise valid claims when required.

Smart Tips to Reduce Auto Insurance Costs

Here are some practical suggestions to legally minimise your car insurance premium spending:

 

• Compare premium rates offered by various insurance providers like ACKO to help you find the most competitive quote.

 

• Opt for a higher voluntary deductible amount you are comfortable paying out of pocket when making a claim. This reduces insurer risk and premium rates.

 

• Maintain safe driving habits and avoid traffic violations to earn No Claim Bonus rewards and discounts from insurers.

 

• Consider absorbing minor repair expenses instead of filing an insurance claim to retain your No Claim Bonus status.

 

• Declare the correct Insured Declared Value based on the current depreciated market value of the car. Incorrect higher IDV increases premiums.

 

• Renew car insurance a few days before the expiry date for continuity benefits and to avoid potential premium hikes.

 

• Opt for long tenure policies of 2 or 3 years, which are cheaper compared to 1 year policy.

How Car Insurance Premiums are Determined?

The car insurance premium is determined based on many important factors. Key ones include the Insured Declared Value, which is based on the current depreciated car value. Other factors are engine cubic capacity, coverage type— third-party or Comprehensive —policy tenure, discounts like the No Claim Bonus, add-ons, and the voluntary deductible amount.

 

The vehicle’s make/model, geographical location, and insured’s personal profile details are also considered. Insurers evaluate all these parameters to evaluate risk. They then arrive at an optimal premium rate using complex algorithms. Online premium calculators simplify this process. These calculators instantly provide customised quotes based on the information provided by the user.

Conclusion

Finding the right balance between lowered premiums and necessary coverage for your valued automobile requires research and periodic reviews. Invest time evaluating your options and adopting suitable strategies to reduce premium costs while getting adequate protection. For hassle-free online insurance with access to quotes from top providers, check out Acko General Insurance. On the ACKO platform, you can easily compare plans, customise policies, and buy or renew car insurance.